Business
Forward plans to transform Sri Lanka into a global aviation and logistics hub
Harischandra Gunaratna of The Island Financial Review speaks to Andre Fernando, Managing Director of MAC Holdings (PRIVATE) LTD
Sri Lanka’s strategic location in the Indian Ocean among major air routes connecting Asia, Europe, Africa and the Middle East, offers a unique opportunity to transform the island into a thriving aviation hub. With the right investments and policy changes, Sri Lanka can leverage its geographical advantage to bolster tourism, facilitate international cargo & passenger transportation, and serve as a key transit point for passengers and goods. This vision not only promises to boost the nation’s economy but also has the potential to redefine its position on the global aviation map. Perfect example is the growth of 4 prominent airlines; Emirates, Fly Dubai, Air Arabia and Etihad and their importance to the economy of UAE, which was a desert in the mid-1990s.
Why Sri Lanka is well-suited to be an aviation hub
Strategic Location: Sri Lanka’s proximity to major global markets—India, China, Southeast Asia, Africa the Middle East and Europe—makes it a perfect transit point for airlines and cargo carriers. This natural geographic advantage means shorter flight routes and lower fuel costs for airlines choosing to hub in Sri Lanka. Sri Lanka could also be the best hub to connect passengers and cargo to Africa and minimize the long deviation one has to take by travelling via Middle- East hubs of Dubai, Abu Dhabi, Doha or Bahrain.
Tourism Potential: The country has long been a magnet for tourists due to its rich culture, pristine beaches, wildlife, and heritage sites. A strong aviation sector will help open new tourism markets, providing better connectivity to key destinations.
Cargo Hub Opportunity: Sri Lanka is positioned at the crossroads of key maritime and air trade routes, making it an ideal center for logistics and cargo services. With growing demand for air freight in e-commerce and perishable goods, Sri Lanka could serve as a bridge for goods moving between East and West. PPP investment at BIA must be done to invest in a courier and e-commerce hub terminal which is a dire necessity.
What are the steps to establish Sri Lanka as an aviation and cargo hub?
1. Upgrade Infrastructure
Expand Airport Facilities: The Bandaranaike International Airport (BIA) in Colombo is Sri Lanka’s primary international gateway, but it faces capacity constraints. Expanding BIA’s terminals and runways to accommodate more flights and passengers is essential. Mattala Rajapaksa International Airport, located in the South, can also be developed as a complementary MRO facility and also a secondary airport for leisure charter flights to be moved to tourism hot spots like Passe kudah, Yala and Arugam bay.
Enhance Ground Handling and Technology: To attract airlines and cargo carriers, Sri Lankan airports need world-class ground handling services, including efficient passenger & cargo handling, including that of passenger baggage, faster immigration & customs clearance and seamless technology integration for booking and scheduling. In order to be competitive one could also moot a 2nd ground handling service which can be a PPP and compete with Sri Lankan airlines.
2. Attract More Airlines and Routes
Open Skies Policy: Adopting more liberal air service agreements with key markets could encourage international airlines to increase their services to Sri Lanka. An open skies policy, or at least partial liberalization, could make Sri Lanka more accessible to global carriers and stimulate both passenger and cargo traffic.
Partnerships and Code Shares: Encouraging SriLankan Airlines to forge stronger code-sharing partnerships with major international carriers would facilitate seamless connectivity, making the island a more attractive stopover for passengers.
3. Develop Cargo and Logistics Capabilities
Establish Free Trade Zones (FTZs): Strategically located Free Trade Zones (FTZs) near the airport, with efficient customs and logistical services, would help attract multinational logistics firms to use Sri Lanka as a warehousing and distribution hub.
Cold Storage and Perishables Handling: Investing in cold storage facilities at airports would allow the nation to become a key player in handling perishable goods, such as food and pharmaceuticals, which require specific conditions during transport.
Leverage Port-Aviation Synergy: The close proximity of Colombo’s port to the airport offers unique opportunities for an integrated sea-air logistics system. Creating multimodal logistics corridors between the Port of Colombo and BIA would enable seamless movement of goods, particularly for time-sensitive shipments.
4. Boost Human Capital and Expertise
Training and Development: Investing in training programs for aviation personnel, including pilots, ground crew, air traffic controllers, and cargo handlers, will ensure a skilled workforce capable of meeting global standards. Minimizing the loss arising from our experienced and trained staff migrating to Middle East countries is a must. This will naturally stop if we can make Sri Lanka a key aviation hub as our salaries will improve to match regional markets in the Middle East and Asia.
Aviation Management Schools: Developing educational institutions focused on aviation management, engineering, and logistics will cultivate local talent, reducing dependence on foreign expertise while fostering innovation within the sector.
5. Enhance Tourism Infrastructure
Create More Tourist Attractions: Developing world-class infrastructure, including hotels, theme parks, and luxury resorts around key airports, will make Sri Lanka more appealing as a tourism destination.
Improve Connectivity: Strengthening the domestic aviation network will allow international tourists to easily explore all corners of the island. Investments in regional airports, like those in Jaffna, Hambantota, and Trincomalee, can play a critical role in this.
6. Sustainability and Eco-Friendly Practices
Green Airports: Building eco-friendly airport infrastructure and encouraging the use of renewable energy can enhance Sri Lanka’s image as a sustainable tourism destination.
Carbon Offsetting Programs: Implementing carbon offsetting schemes for airlines operating in Sri Lanka will help mitigate the environmental impact of increased air traffic and appeal to environmentally conscious travelers.
What are the benefits of a Sri Lankan aviation hub?
Economic Growth: A well-functioning aviation hub will drive investment, create jobs, and increase the island’s GDP. From tourism to freight forwarding, the aviation sector can have a multiplier effect across industries.
Boost to Tourism: As Sri Lanka becomes a transit point, it will increase exposure to new tourists who can be enticed to stay and explore the country. Targeting niche tourism, such as medical tourism, eco-tourism and adventure travel, will diversify the industry.
Enhanced Trade and Connectivity: The establishment of a logistics hub will facilitate regional and global trade. Sri Lanka will become the go-to center for re-exports and regional distribution, attracting multinational companies to use its airspace and logistics capabilities.
What are the challenges to overcome?
While the potential for an aviation hub is promising, Sri Lanka must overcome several challenges to achieve this goal:
Political Stability: For long-term investments in aviation infrastructure, political stability and consistent policies are necessary.
Regulatory Framework: A transparent and investor-friendly regulatory environment will be essential to attracting foreign airlines and logistic operators.
Financial Investment: Developing airports, logistics centers, and tourism infrastructure will require significant financial resources and strategic public-private partnerships.
(Andre Fernando is a self- made entrepreneur and the grandson of a billionaire businessman from Wattala,Boniface Fernando hailing from an era when billionaires were far and few in the country. Fernando is the chairman of the Transport and Logistics committee of the National Chamber of Commerce of Sri Lanka)
Business
Cargills adopts Crow Island Beach in partnership with Clean Ocean Force Lanka
Cargills Food and Beverage Ltd. through its brands KIST and Knuckles, has signed a Memorandum of Understanding (MoU) with Clean Ocean Force Lanka (COF) to adopt Crow Island Beach for one year, reinforcing its commitment to long-term coastal conservation in Sri Lanka.
This pioneering initiative is designed to protect and preserve the coastal environment through several key measures, including the removal of plastic and other pollutants from the beach and surrounding coastal area. As part of the adoption programme, the beach will be maintained daily with the support of dedicated beach caretakers, while also supporting their livelihoods by providing meaningful income opportunities.
Marking the partnership and in celebration of World Recycling Day, a coastal clean-up programme was conducted at Crow Island Beach to remove plastic and other manmade pollutants. Volunteers from Cargills, Clean Ocean Force Lanka, the Interact Club of Colombo, the Colombo Municipal Council and the Women’s Force of COF Negombo (Sri Vimukthi Association) participated in the clean-up with support from the Marine Environment Protection Authority (MEPA), the Sri Lanka Police Environmental Division and the Ministry of Local Government and Environment as well as the Crow Island Beach Park Society.
Jerome Fernando, Chairman & Co-founder of Clean Ocean Force Lanka said that, “Marine & Coast Conservation demands a unified front. Our unique Public-Private-People Partnership model is the cornerstone of our mission, and today, we are thrilled to welcome Cargills (Ceylon) PLC as a vital partner in this journey adopting the Crow Island Beach for the next one year. This collaboration will not only amplify our efforts to eliminate plastic and manmade pollutants from our beaches, but also reinforce our commitment to empowering marginalized communities through sustainable livelihood opportunities. Cargills’ deep-rooted dedication to environmental sustainability and community wellbeing perfectly aligns with our vision.”

Jagath Gunasekara, General Manager of MEPA added, “The Marine Environment Protection Authority consistently promotes active private sector engagement in marine and coastal conservation, as well as pollution control initiatives. This approach aligns closely with our Beach Caretaker Programme. We are pleased to collaborate with Cargills (Ceylon) PLC in the adoption of Crow Island Beach through our long-standing partnership with Clean Ocean Force Lanka.”
During the event, Knuckles also launched Sri Lanka’s first tethered bottle cap, introducing a packaging innovation aimed at improving plastic waste management and supporting recycling efforts. The tethered cap is designed to remain attached to the bottle after opening, reducing the likelihood of caps being discarded separately. Bottle caps are among the most commonly littered plastic items globally and frequently enter landfills and waterways due to their small size and low collection rates.
Speaking on the initiative, Arjuna Kumarasinghe, Managing Director of Cargills Food & Beverage Ltd., said, “Cargills has always believed in taking responsibility for the communities and environments around us. By adopting Crow Island Beach, we’re able to work closely with our partners and local volunteers to protect this part of our coastline. Launching the tethered bottle cap is another way we’re addressing plastic waste and making recycling easier for everyone.”
Business
CBSL adopts cautious stance in the face of economic uncertainties
The Central Bank is keeping its overnight policy rates unchanged, adopting a cautious stance amid uncertainty over the inflationary impact of energy prices due to the Middle East crisis.
‘We maintained the overnight policy rate at 7.75 percent, considering low inflation and a restrained approach on the fallout of the US-Israeli war on Iran, Central Bank Governor Dr Nandalal Weerasinghe said.
The Governor made these remarks yesterday at a press briefing held at the Central Bank head office in Colombo to announce the monthly monetary policy stance.
Dr Weerasinghe added: ‘Inflation is now expected to reach the Central Bank’s target of 5 percent in the second quarter of 2026, after Sri Lanka raised fuel prices by about 35 percent this month.
‘However, spillovers from the ongoing conflict could weigh on domestic economic activity in the period ahead should the conflict be prolonged.
‘The rates were steady since last May as the nation recovers from a 2022 financial crisis driven by a severe dollar shortage.
‘Supported by a US$ 2.9 billion programme with the IMF, Sri Lanka posted a strong economic recovery last year, growing by 5 percent and now targeting growth between 4 percent and 5 per cent in 2026.
‘What stands out is that they see space for inflation to rise because of energy prices but still stay contained.
‘From now to June, underlying economic momentum has the space to keep pace despite the disruption because domestic liquidity and credit has been quite substantial as well.
‘An IMF team will arrive in Colombo on Friday for the combined fifth and sixth reviews of the bailout.
‘Furthermore, Gross Official Reserves increased to US$ 7.3 billion at end February 2026 and the Central Bank purchased a substantial amount of foreign exchange from the market in the first two months of the year.
‘However, the ongoing conflict in the Middle East poses risks to Sri Lanka’s external sector outlook, particularly through energy, tourism, trade and remittance flows, although the overall magnitude of the impact remains uncertain.
‘While the Sri Lanka rupee remained relatively stable in early 2026, some depreciation pressures were observed following the onset of the Middle East conflict, similar to the exchange rates of regional peers.
‘Meanwhile, the Monetary Policy Board remains prepared to implement appropriate policy measures to ensure that inflation stabilizes around the target, while supporting the economy to reach its potential.’
By Hiran H Senewiratne
Business
Dialog Unveils Dialog Play Mini with Netflix and Apple TV
Dialog Television, Sri Lanka’s #1 Pay-TV service provider, has announced the latest upgrade to its smart entertainment lineup with the Dialog Play Mini, featuring seamless access to global streaming platforms including Netflix, Apple TV and YouTube, alongside the Dialog Play entertainment ecosystem for a unified viewing experience. Previously known as the ViU Mini, the device has now been reintroduced as the Dialog Play Mini, reflecting the evolution of Dialog’s digital entertainment platform under the Dialog Play brand.
The Dialog Play Mini transforms any television into a smart 4K entertainment hub by enabling hybrid multi-platform streaming across leading global and local content platforms, delivering a smoother, more intuitive viewing experience. Whether enjoying Netflix originals, Apple TV exclusives, or local favorites, households can now experience world-class entertainment in one compact device.
The Dialog Play Mini brings a streamlined, user-friendly experience to any home setup. Its single numeric-keypad remote controls both the TV and the device, offering simplicity and convenience for everyday viewing. With multiple connectivity options including Wi-Fi, hotspot, LAN, or wingle, the device ensures uninterrupted entertainment even in areas without smart TVs or advanced broadband setups.
Bridging the gap between entry-level set-top boxes and premium Android TV devices, the Dialog Play Mini offers a plug-and-play smart experience. Supported by Dialog’s nationwide service network, local warranty, and after-sales care, it delivers a reliable, feature-rich entertainment experience for Sri Lankan homes.
“With Dialog Play Mini, entertainment becomes more directly accessible for every Sri Lankan home – with or without a Smart TV,” said Lim Li San, Group Chief Operating Officer of Dialog Axiata PLC. “By bringing Netflix, Apple TV, YouTube, and Dialog Play together in one compact 4K-ready device, we’re redefining home entertainment through simplicity, innovation, and the power of connectivity.”
The Dialog Play Mini is now available at Dialog Experience Centers and authorized retailers islandwide. To purchase online, please visit
https://dialog.lk/dialog-play-mini
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